Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-02-02
SOUTHERN LINE SOLD.
FRANCHISES OF THIS TELEGRAPH
COMPANY SOLD AT AUCTION.
Pace, Wise. and Associates the Pur-
chasers-A Eew Company TO
be Organized.


Of The Southern Telegraph Company
were sold by Mr.. n. W. Bowe, real
estate auctioneer, in front Of his Office,
No. north Eleventh street, yesterday.
The sale was made by this gentleman
for the special commissioners, Messrs
H. Is. Turner, of New York, and A. L..
Boulvare, Of this city, the latter OF
whom is also receiver under DEGREES OF
the United States courts.
The sale was advertised tO take place
at II o'clock NJ, and a quarter OF an
hour earlier the people began to con
gTcgate, and by the appointed hour
there was a large crowd in attendance.
Among the most distinguished mag
mates present were the following gen
tlemcn from New York Edward 5.
Stokes, president Of the United Line ;
A. b. Chandler, president of the Postal
Telegraph and Cable Company ;
Dwight Townsend, counsel for this
company; James Merrihew, general
superintendent Of the southern div
sion of the Western Union, and ID. D.
ran, general superintendent of constru -
ton of the Western Union.
THE DISPUTED BONDS.
After reading the decree of the Court
ordering the sale, and the terms and
conditions upon which the sale would be
made, Mr. Bowe read paper, which
had Just been handed him by Receiver
BOulware, signed =. Lauterback, attOr-
ney, in which the writer said that he as
counsel represented G. G. Brown d Co,
who hold 1876, 600 OF the cOmpany's
bonds, which they claimed to be valid,
and which were in litigation by appeal.
Mr. Wise, as counsel for the bond
holders, requested Mr.. Bowe TO state
that these bonds had been thrown out
by the lower court and while notice
had been given that an appeal would
be taken none had been taken, and he
did not believe the case would ever be
taken to the appellate court.
Mr.. Stokes stated that on Friday he
signed the required bond, which had
been mailed to Norfolk, and the case
would be taken up.
PACE, WISE, AND ASSOCIATES.
All preiminaries being over Mr..
Bowc proceeded to "cry the property
and TO ask for bids.
Mr.. DOran, for the Western Union
started with a bid Of $3.50, 600; Mr. A.
b. Chandler bid $275,0 for Mr.. Ed
Stokes Mr.. Dwight Townsend bid
$500, 600 for the Postal Telegraph
Company; Mr.. Chandler raised him
S25, COO Mr. Doran followed with a
bid OF $450,000, and Mr.. Chandler
swellcd the sum to Si5j, 600.
Up TO this time the bids We're made
in rapid succession. There was lag
when Mr.. j. b. Pace, who was stand
ing in rear Of Mr.. Bowe's Office, stepped
forward and bid $lG0,O00. As soon as
this bid was made Messrs Chandler.
Stokes, and Doran left, and, after dwell
ing some time and not receiving an
other bid. Mr.. Bowe knocked the pro-
pety out 10 James B. Pace, John ;.
Wise, and associates.
THE DEPOSIT MADE.
The crowd then dispersed, and the
gentlemen directly interested in the
sale proceeded to fix up matters.
Mcssrs Pace and Wise, after signin
the contract as prescribed by the court
at once went to the bank and Mr. Pac
drew his individual check for $500
which WAS required as the cash pay
mcnt The remaining 100000 vii
have to be paid within thirty days after
the sale is confirmed by the United
States Circuit Court
TO BIZ RUN As A DISTINCT CORPORATION.
A representative Of the Disp0fch
called on Hon. John 5. Wise at his Of
fee in Skaters building Yesterday after
j. lon to make inquiries concerning the
parties interested in the purchase and to
learn what course the new owners pro
pose to pursue. As soon as Mr. Stokes
had finished an interview with Mr..
Wise the scribe was ushered in.
Mr. Wise, i'll reply to questions
asked, said that he could not disclo
the names of the parties interested III
the enterprise for whom he is counsel;
that q new and distinct corporation
would be organized, in which Mr. Pace
and himself will remain. vsth other
gentlemen OF both this city and New
York. but whose names he was not at
liberty to give out TO the public
Mr.. Wise was asked if the purchase
was in any way in the interest of the
Western Union Company. This ques-
ton. he said, he could not answer. He
did saw, however, that in few weeks a
day will have to be fixed by @he Court
for the confirmation of the sale, and
that in the mean time company will be
organized and the line will be run in
depcndently.
POTOMAC AND GULF COMPANY.
During his conversation Mr.. Wise
said that the new concern will, IN all
have for its name the " Po-
tomac and Gulf Company" and that
with well-equipped line they will en-
lcavor to furnish a good service at rea-
sOnable rates.
The floating debt Of the Southern
Company was small. The nominal
amount of the mortgage debt was
81. SOC. 900, but S6Sl 900 of bonds
havinebeen thrown out it remains really
81 $40, ,OOO-that is, unless the Appel
late Court reverses the United States
District Court and allows these bonds
that have been thrown ont as valid:
The company's stock is comparatively
worthless, and the bonds now rate at
- l--.-..l A.. H., ,o,,tc On thn dollar